Spain: Air Nostrum prepares mergers

Spanish regional airline Air Nostrum announced a thorough restructuring ofthe company in preparation for a possible merger with its Irish counterpart CitiJet (which still requires authorization from the continent’s competition authorities) or any future mergers.

Carlos Bertomeu, president of Air Nostrum, declared that he considers “inevitable” an eventual concentration with another airline, given the prevailing dynamics in the market. If the current agreement is approved, Air Nostrum would have a majority stake in the new group of regional airlines, the largest such group in the continent and accounting for more than one hundred aircraft.

The division and restructuring will involve splitting Air Nostrum into 7 separate companies, allowing the airline to provide services to other group members and third parties. The current 1,500 workers will pass to these new companies, keeping their rights and seniority.

“We are not going to just look on, because there are only three options: either you are a consolidator, or you are consolidated or you disappear,” concluded Bertomeu, noting the trend towards concentration in the global aviation sector.
Full Content: El Pais

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